For investors in JITF Infralogistics, an OP Jindal Group company, the past 11 months have been nothing short of a dream run, with the stock price surging as much as 2,000% after hitting a record low in March last year. The water supply management company has outperformed its heavyweight peer group companies Jindal Steel & Power (48%) and Jindal Stainless (177%), due to stronger demand for the scrip over the year. Investors are betting on this loss-making company in the hope of an increase in the order book amid the government’s impetus on the infrastructure sector.
JITF Infralogistics shares have remained on investors’ radar despite consistently making losses. For the first quarter ended June 2021, it reported a loss of ₹40.61 crore on revenue of ₹206 crore. It didn’t do any better in the September quarter, with net loss rising to ₹45.43 crore as against loss of ₹39.89 crore in the year-ago period. Revenue rose 16.78% to ₹228.67 crore compared to ₹195.81 crore during the previous quarter ended September 2020. For the financial year 2020-21, it posted a total loss of ₹152 crore and revenue of ₹929 crore.
JITF Infralogistics, the infrastructure arm of Jindal SAW, focuses on providing infrastructure development solutions in the areas of water, wastewater, and solid waste management, logistics and transportation equipment fabrication.
With a market capitalisation of ₹411 crore, the microcap stock has delivered a whopping 2,000% return over the past 11 months, with its share price rebounding from 52-week low of ₹7.3 on March 25, 2021, to ₹159.90 intraday on the BSE today. In comparison, the benchmark index BSE Sensex gained nearly 22% during the same period.
If you had invested ₹1 lakh in JITF Infralogistics by the end of March last year it would have now turned more than ₹21.90 lakh at present.
The Jindal group share has delivered consistent returns throughout the year as it has rallied 370% in the past six months, and 23% since the beginning of this calendar year. In the past eight trading sessions, the share price of JITF Infralogistics has jumped 45%, constantly hitting 5% upper circuit on the BSE.
Even today, the stock opened higher and locked in an upper circuit of 5% at 159.9 apiece on the BSE amid a spurt in volume trade. The stock was moving higher than 5-day, 20-day, 50-day, 100-day, and 200-day averages, but lower than 100-day averages.
According to stock research platform Markets Mojo, JITF Infra share traded higher as compared to its average historical valuations. The stock has technically turned ‘mildly bullish’ from ‘bullish’ on November 15, 2021 at ₹196.05, the research firm highlighted.